VCE Accounting Question Thread!

[pahm]

Good question, I completed Accounting 3+4 in High School and then went on to complete a BCom at Monash. The first accounting unit you study is essentially the same as high school accounting. The university assumes you know nothing about accounting, and teaches it to you in that way. That being said, it is university, so the expectations on you speed of learning is greatly accelerated. You will be expected to learn 2 years worth of high school content in 1 semester, roughly 16 weeks or so. So to answer your question, someone who has completely VCE accounting, even just 1/2, and actually understands the concepts and fundamentals will find the first accounting subject in university a breeze. All subsequent accounting units in university are beyond the scope of VCE accounting, but build on its fundamentals.

ah ok, thank you so much for your reply! So people who have done accounting will have an advantage, but the course is designed for those with zero background knowledge?

Sorry for all my questions but do you know roughly what proportion of people in BCom at uni have done vce accounting? Is it a significant number? thank you!

[hq317]

Hi,
If there is a decrease in cost of goods sold, there would obviously be an increase in the GPM, but would this affect the NPM in any way (as I've read that only expenses can affect the NPM).
Any help would be appreciated thanks.

[Manny.R]

ah ok, thank you so much for your reply! So people who have done accounting will have an advantage, but the course is designed for those with zero background knowledge?

Sorry for all my questions but do you know roughly what proportion of people in BCom at uni have done vce accounting? Is it a significant number? thank you!

Yes, that would be correct. They teach that unit as though you have no knowledge of accounting.
With respect to your second question, I do not know the answer to that. There are so many people that study BCom at Monash it is impossible to tell.

[Manny.R]

Hi,
If there is a decrease in cost of goods sold, there would obviously be an increase in the GPM, but would this affect the NPM in any way (as I've read that only expenses can affect the NPM).
Any help would be appreciated thanks.

It would indeed affect NPM. What's interesting is that you are partly correct in saying 'only expenses can affect the NPM', although obviously revenues affect it too. But your statement "only expenses can affect the NPM" is correct as it includes COGS, because COGS is an expenses. And therefore a variation in COGS will affect NP and NPM.

If you are talking about Net Profit Margin, then start with the formula for calculating it:
NPM = Net Profit/Revenue

This formula can be further broken down into:
NPM = (Revenue - COGS - Expenses)/Revenue

The first thing you should notice is the COGS is a part of the formula, and therefore any increase or decrease in COGS will affect NPM.

What you need to remember is that anything that increases or decreases Gross Profit will increase or decrease Net Profit. Because GP is contained within the calculation of Net profit. There are multiple ways to look at NP below and all are correct.
NP = Revenue - Expenses (which include COGS)
NP = Revenue - COGS - Expenses
NP = GP (which is Rev - COGS) - expenses

[pahm]

Yes, that would be correct. They teach that unit as though you have no knowledge of accounting.
With respect to your second question, I do not know the answer to that. There are so many people that study BCom at Monash it is impossible to tell.

thank you so much for your help!

[Manny.R]

thank you so much for your help!

You're welcome.

[yikesagain]

Hi,

I was looking at a question from the 2019 exam for cashflow.
I don't understand how they get to the accounts payable figure of (222 015).

My thinking is the cost of sales at 210,000 + inventory on hand of 25,000. Less the 5% discount?

Thanks,

[morlin01]

HOW IS A DEPOSIT MADE BY A CUSTOMER REPORTED IN CASH FLOW STATEMENT -- LIKE WHAT HEADING DO I USE -- DO I USE UNEARNED SALES REVENUE OR DEPOSIT?

[C.J.Tielen]

HOW IS A DEPOSIT MADE BY A CUSTOMER REPORTED IN CASH FLOW STATEMENT -- LIKE WHAT HEADING DO I USE -- DO I USE UNEARNED SALES REVENUE OR DEPOSIT?

Hey man,
Under Operating activities, as Unearned Sales revenue. Trust.

You'll be fine, chill brother

[valjaybj]

hi, what's the best way to use reading time in the exam? would you recommend skipping straight to all the theory questions (esp the 4-6 mark ones) and formulate some ideas, then quickly jot down your ideas as soon as writing time starts or is that a waste of time???

[PizzaMaster]

Hi!
In a balance sheet, there is a section called "Bank:  ". I was wondering if you have to add the loan in it too?
For example in one of the questions it says:
Someone has Cash $70000, office assets $11000, vehicle $35000. They also borrowed $30000 cash from
ANZ Bank and $5000 cash from AMP Finance.
Is the cash value $70 000
OR
is it $70 000 +$30 000 + $5000
= $105 000
?

[PizzaMaster]

Hi
I was just wondering whether wages was part of owner's equity or not?

[Commercekid2050]

Hi
I was just wondering whether wages was part of owner's equity or not?

Hi Pizzamaster,

You can consider wage as a part of owner equity as wage are an expense which impact business Net Profit. Net Profit would  improve owner equity or lower (Net Loss). Thus wage can be consider a part of owner equity.

Hope it helps

[Commercekid2050]

Hi!
In a balance sheet, there is a section called "Bank:  ". I was wondering if you have to add the loan in it too?
For example in one of the questions it says:
Someone has Cash $70000, office assets $11000, vehicle $35000. They also borrowed $30000 cash from
ANZ Bank and $5000 cash from AMP Finance.
Is the cash value $70 000
OR
is it $70 000 +$30 000 + $5000
= $105 000
?

Hi Pizzamaster (Again)

While preparing balance sheet you would have to add money you get loan in bank. This is as you need to equal Asset=Liability+Owner Equity. Both the loan would be part of liability section in balance sheet. so to equal the equation you would need to increase bank value.

Hope this helps

[PizzaMaster]

Oh I understand now
In other questions it doesn't specify how much loan is taken but we just have to assume that the loan is included in the 'bank' section?